SHORT-TERM TRADING TIPS: Aries Agro (Rs 122.6): Buy

We recommend a buy in the stock of Aries Agro from a short-term perspective. It is evident from the charts of the stock that after encountering resistance at Rs 200 in late September 2010, the stock started to decline and was on a medium-term downtrend. However, after retracing approximately 61.8 per cent Fibonacci retracement level of its prior up move, the stock found support in the band between Rs 95 and Rs 100 in early February 2011. Moreover, Rs 100 is key medium-term support level. Subsequentlytriggered by positive divergence in the daily relative strength index as well as moving average convergence divergence indicator, the stock reversed direction. It has been on a short-term uptrend since then.

On March10, the stock conclusively broke through its medium-term downtrend line and 50-day moving average by jumping seven per cent with good volumes. With this, the stock appears to have resumed its long-term uptrend. The daily RSI has entered the bullish zone and daily MACD is on the verge of entering the positive territory implying upward momentum. We are bullish on the stock from a short-term perspective. We anticipate its up move to continue until it reaches our price target of Rs 127 or Rs 130 in the days ahead. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 119.5.

FOR MORE STOCK TIPS VISIT http://stockindia.slinkset.com

sourced from: Business Line

SHORT TERM TRADING TIPS : BUY - Elgi Equipments (Rs 90.5)

We recommend a buy in the stock of Elgi Equipments from a short-term perspective. It is apparent from the charts of the stock that it has been on a long-term uptrend from its March 2009 trough around Rs 14, forming higher peaks and higher troughs. In early February 2011, the stock found support (200-day moving average) around Rs 75 following a corrective decline from its November 2010 peak of Rs 106. The stock resumed its long-term uptrend triggered by positive divergence in the daily relative strength index. Since then, the stock has been on a short-term uptrend as well.

Reinforcing this trend, it jumped almost six per cent accompanied by good volume on Wednesday. Moreover, it is hovering well above its 21- and 50-day moving averages. The daily RSI has entered the bullish zone and weekly RSI is on the brink of entering this zone from the neutral region. Daily moving average convergence divergence indicator has entered positive territory implying upward momentum. Our short-term forecast for the stock is bullish.

We expect it to move higher until it touches our price target of Rs 94 or Rs 96 in the forthcoming trading session. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 88.

CLICK FOR BEST AFFILIATES 2 EARN MONEY

SOURCE: BUSINESS LINE

SHORT-TERM TRADING TIPS: BUY - Apollo Tyres (Rs 61.9)

We recommend a buy in the stock of Apollo Tyres from a short-term perspective. It is evident from the charts of the stock that following its all-time high of Rs 88 marked in September 2010, it was on a medium-term downtrend until it found support at its long-term base of around Rs 45 in early February 2011. With positive divergence displayed in the weekly relative strength index and due to the presence of significant long-term support at this level, the stock changed direction . Since then, Apollo Tyres has been on a short-term uptrend. The stock jumped 7 per cent on March 1, breaching its 21-day moving average conclusively and also formed a bullish engulfing candlestick pattern. Moreover, on Tuesday the stock surged 4 per cent, decisively penetrating its immediate resistance at Rs 60 as well as its 50-day moving average.

We notice that there has been an increase in daily volumes over the past six trading sessions, strengthening the bullish momentum. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI is heading towards the bullish zone. Daily moving average convergence divergence indicator has entered the positive territory implying upward momentum. We are bullish on the stock from a short-term horizon. We expect its up move to prolong until it hits our price target of Rs 64 or Rs 66 in the approaching sessions. Short-term traders can consider buying the stock with stop-loss at Rs 60.
Source: Business Line